T-0.1 - Act respecting the Québec sales tax

Section 26.0.5 Disposition versions

2012-05-09

26.0.5. If internal use of an incorporeal resource of a specified person occurs during a taxation year of the specified person, the following rules apply:

(1)  for the purposes of section 18,

(a)  the specified person is deemed

i.  to have made available, during the taxation year, at a permanent establishment of the specified person outside Canada incorporeal movable property in the course of carrying on a specified business of the specified person and to be the person to whom the incorporeal movable property was made available,

ii.  to be the recipient of a supply made outside Canada of the incorporeal movable property, and

iii.  to be, in the case of a specified person not resident in Québec, resident in Québec,

(b)  the supply is deemed not to be a supply of property that relates to an immovable situated outside Québec, to a service to be performed wholly outside Québec or to corporeal movable property situated outside Québec,

(c)  the value of the consideration for the supply is deemed to be the total of all amounts, each of which is the fair market value of a part, or of the use of a part, as the case may be, of the incorporeal resource referred to in section 26.0.3

i.  if the part is only referred to in paragraph 1 of section 26.0.3, at the time referred to in that paragraph, and

ii.  in any other case, on the last day of the taxation year of the specified person, and

(d)  the consideration for the supply is deemed to have become due and to have been paid, on the last day of the taxation year, by the specified person; and

(2)  for the purpose of determining an input tax refund of the specified person, the specified person is deemed to have acquired the property for the same purpose as that for which the part of the incorporeal resource referred to in section 26.0.3 was acquired, consumed or used by the specified person.

2012, c. 8, s. 266.